For absolutely no good reason.. Just reinflating the housing market in preperation for the next housing market crash which is now CERTAINLY going to be worse than the last one.
Here’s Tyler Durden’s suscinct evalutation. (BTW QE = Quantative Easing)…
From Zero Hedge
The Freddie Mac 30 year Fixed Rate Mortgage rate for the May 27 week was announced, and, in tried and true “let no crisis go to waste” fashion, it has dropped to a fresh 2010 low of 4.78%. So to recap: stocks are where they were at the beginning of the year, the US federal debt is over $13 trillion, QE is over, Europe is imploding, China is tightening, North and South Korea are blasting The Eagles at each other at over 200 dB in clear violation of the Geneva convention, there is no oil left in the GOM, US double dip is accelerating, Marsian global rescue swaps are being considered by the Fed, yet mortgages are cheaper than they ever have been, as the government goes double all in in its attempt to reflate the housing bubble. Well played, Ben, well played.